Segments Information

9 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

Segments Information

6) Segments Information

The principal business of the Corporation is the sale of property and casualty insurance. The profitability of the property and casualty insurance business depends on the results of both underwriting operations and investments, which are viewed as two distinct operations. The underwriting operations are managed and evaluated separately from the investment function.

The property and casualty insurance subsidiaries underwrite most lines of property and casualty insurance. Underwriting operations consist of four separate business units: personal insurance, commercial insurance, specialty insurance and reinsurance assumed. The personal segment targets the personal insurance market. The personal classes include automobile, homeowners and other personal coverages. The commercial segment includes those classes of business that are generally available in broad markets and are of a more commodity nature. Commercial classes include multiple peril, casualty, workers’ compensation and property and marine. The specialty segment includes those classes of business that are available in more limited markets since they require specialized underwriting and claim settlement. Specialty classes include professional liability coverages and surety. The reinsurance assumed business has been in runoff since the transfer of the ongoing reinsurance assumed business to a reinsurance company in 2005.

Corporate and other includes investment income earned on corporate invested assets, corporate expenses and the results of the Corporation’s non-insurance subsidiaries.

Revenues and income before income tax of each operating segment were as follows:

	Periods Ended September 30
	Third Quarter						Nine Months
	2015			2014			2015			2014
	(in millions)
Revenues
Property and casualty insurance
Premiums earned
Personal insurance	$	1,114		$	1,118		$	3,364		$	3,296
Commercial insurance		1,390			1,338			4,077			3,943
Specialty insurance		662			663			1,964			1,972
Total insurance		3,166			3,119			9,405			9,211
Reinsurance assumed		—			—			(1	)		1
		3,166			3,119			9,404			9,212
Investment income		322			338			982			1,034
Total property and casualty insurance		3,488			3,457			10,386			10,246
Corporate and other		8			7			25			25
Realized investment gains, net		82			110			113			351
Total revenues	$	3,578		$	3,574		$	10,524		$	10,622
Income (loss) before income tax
Property and casualty insurance
Underwriting
Personal insurance	$	154		$	141		$	213		$	188
Commercial insurance		207			151			446			333
Specialty insurance		161			133			448			355
Total insurance		522			425			1,107			876
Reinsurance assumed		4			—			7			1
		526			425			1,114			877
Increase (decrease) in deferred policy acquisition costs		(1	)		14			44			48
Underwriting income		525			439			1,158			925
Investment income		310			327			949			1,004
Other charges		(4	)		—			(4	)		(4	)
Total property and casualty insurance		831			766			2,103			1,925
Corporate and other		(66	)		(58	)		(209	)		(177	)
Realized investment gains, net		82			110			113			351
Total income before income tax	$	847		$	818		$	2,007		$	2,099